Homebuyers must earn a maximum of 80% of the area median income (AMI) in the zip code they’re buying a home. You can check the income limit for your area using Fannie Mae’s lookup tool.
Borrowers may use gifts, grants, or a Community Second loan to cover their cash to close and their down-payment.
The HomeReady program is ideal for:
- First-time or repeat buyers
- Have a credit score of 620 or higher
- Have limited cash for a down payment — but at least 3%
- Earn a salary less than or equal to 80% of the area median income
- Have supplemental income from a tenant
- Cancellable mortgage insurance (restrictions apply); lower MI coverage (25% for LTVs >90% to 97%) compared with standard requirements
- Innovative underwriting flexibilities expand access to credit responsibly. Flexibilities include rental and boarder income, as well as non-occupant borrowers, such as parents